The truth about revocable trusts

On Behalf of | Dec 6, 2021 | Estate Planning

When planning your estate in Michigan, you might want to consider protecting your current assets through a revocable trust. Irrevocable trusts aren’t changeable in most cases although they still provide the basic services of a trust. With a revocable trust instead, you have the right to make deposits, make withdrawals and even assign yourself as a beneficiary. A revocable trust can be revoked at any time, and a trustee in charge of it manages the assets therein.

Asset control

Whether for life or death, estate planning accounts for anything that might happen. In life, you might become unable to manage your own assets correctly. In death, you might have beneficiaries who bring your estate under contestation. Anyone, which includes public spectators, can contest the contents of your will after you die. The contents and wishes of a trust, however, are considered private by law. Trust directives better control your assets.

What you get by having a trust

Estate planning with a revocable trust gives you a number of tools. During the execution of your estate, which occurs once you pass, the management of your assets can be dictated by the trust. The tools you have and the assignments you can make include the following:

• Beneficiaries: These are the people or entities legally named to receive the trust.
• Trustees: The trustee is the manager of the assets in the trust who works off written orders.
• Living wishes: If you’re incapacitated, a trust can use living wishes to manage your estate.
• Expiration dates: Trusts can release the money to beneficiaries over specified spans of time.
• Asset privacy: Only the trustor, trustee and beneficiaries will know the contents of a trust.

Estate planning in Michigan

Sheltering your assets from uncertainty is a way to preserve wealth for your future beneficiaries. Trusts can also be set up for a charitable cause or to finish a life project you had. By sheltering your assets through a trust, you can avoid taxes or transfer fees later on. You may want to learn about your estate tax, how to avoid extra taxes using a trust and other benefits of this estate planning tool.